OpenAI details for-profit transition plans as Microsoft negotiations continue and Musk files lawsuit
OpenAI announced plans to transition to a for-profit business structure in 2025, creating a Delaware public benefit corporation. This move comes amid ongoing negotiations with Microsoft regarding its equity stake in the restructured company. OpenAI recently raised $6.6 billion, increasing its valuation to $157 billion. The company is expected to incur significant losses, projecting a cash burn of $14 billion in 2026, with a potential break-even by 2029. Elon Musk has filed a lawsuit to block OpenAI's conversion to a for-profit entity. Musk, who left the OpenAI board in 2018, has been critical of the company's direction.